Big changes are coming to Texas sports. Governor Greg Abbott has signed House Bill 126 into law, opening the door for more athletes across the state to sign name, image, and likeness (NIL) deals. The law now allows athletes who are 17 years old and either enrolled in college or eligible under the law to begin earning from their personal brand.
While it creates new opportunities, the law does not extend to younger high school students. Only those who are 17 or older may sign NIL contracts—and only if they meet the state’s updated guidelines.
Aligning with National Shifts
This move aligns Texas with the broader changes happening in college sports, especially in light of the pending House v. NCAA antitrust case. That $2.8 billion settlement would permanently reshape college athletics by allowing universities to share revenue directly with players—up to $20.5 million per school starting in the 2025–26 academic year.
House Bill 126 sets the groundwork for Texas universities to participate in this system legally, lifting the previous ban that stopped schools from directly paying athletes. Now, athletes can receive NIL compensation both from their school and outside brands.
What the Law Actually Changes
Here’s what HB 126 does:
- Allows athletes age 17 and up to sign NIL deals.
- Removes the ban on universities paying players directly.
- Keeps protections in place for minors under 17 unless already enrolled in college.
- Helps Texas schools prepare for possible revenue-sharing rules coming July 1.
Before this change, Texas only allowed third-party NIL deals—and only for college athletes. Schools themselves couldn’t pay athletes or sign them to branding deals. That’s now changed for athletes 17 and older, setting the stage for a new chapter in athlete compensation.
No Green Light for Most High School Athletes
Despite headlines, this is not a wide-open NIL market for high school athletes. Only those who are 17 and meet the criteria can take part. Most high school players will still have to wait until they enter college to begin earning from their name, image, and likeness.
Looking Ahead
The NCAA settlement—expected to take effect July 1—could still shape or override parts of the Texas law. Both the state and the NCAA are in wait-and-see mode until federal courts finalize the House case. That deadline is June 27.
In the meantime, schools like Texas are already making adjustments. Longhorns AD Chris Del Conte said ticket prices are going up $13 per game to help fund NIL opportunities and meet future costs. Every athletic program at Texas is expected to be fully funded for roster maximums under the new system.
With the law now in place, athletes, schools, and sponsors across Texas have new tools—and new responsibilities—to navigate. The next few weeks will be key as the NCAA decision looms and the revenue-sharing era inches closer.
